September 18, 2020
The FHA and HUD have announced disaster relief for home owners with FHA mortgages in the recently-declared federal disaster areas there.
Wildfires have destroyed massive amounts of property in the state of Orgeon and other areas in the western part of the United States; affected states have been reviewed for federal disaster declarations as a result. The U.S. Department of Housing and Urban Development has announced disaster relief for FHA borrowers for the following Oregon counties.
- Clackamas
- Douglas
- Jackson
- Klamath, Lane
- Lincoln
- Linn
- Marion
The federal disaster declaration means HUD can offer foreclosure relief to FHA borrowers. That relief starts with foreclosure relief in the form of a 90-day moratorium on foreclosure actions on affected borrowers, and there is also help with FHA loans to repair or replace homes damaged by the fires.
Borrowers who have homes that were destroyed by natural disasters should contact their loan servicers immediately to make arrangements; do not stop making mortgage payments unless you have discussed your circumstances with your loan officer and you have come to an agreement with the participating FHA lender on next steps.
Even if your home is not habitable or has been destroyed, don’t assume mortgage payments do not have to be made–call your lender to learn what to do next after the disaster. And remember that mortgage loan relief is not automatic–you must contact your loan servicer.
Call the FHA Resource Center to get more information on what help may be available to you in any federally declared disaster zone. Call the Center at 1-800-CALL FHA (1-800-225-5342).
One type of assistance offered by the FHA involves the FHA Section 203(h) rehabilitation loan program offered to disaster victims with homes damaged “to such an extent that reconstruction or replacement is necessary and are facing the daunting task of rebuilding or buying another home” according to the HUD official site.
These Section 203(h) borrowers are eligible for 100 percent financing, including closing costs. Such loans are only for those in federal disaster areas.
An FHA 203(h) Rehab Mortgage should not be confused with the FHA 203(k) rehab loan program which available to for any financially qualified borrower. FHA 203(h) loan may be used in conjunction with the 203(k) rehab loan if so desired and the applicant financially qualifies.
The FHA and HUD have pledged to share information with the Federal Emergency Management Agency (FEMA) and the State of Oregon about “housing providers that may have available units in the impacted counties” for those who need such relief.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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